Oil prices have dropped but Australian motorists should remain wary
The global benchmark for oil prices has fallen by more than $2 a barrel, but what does this mean for Australians at the bowser?
Australian motorists should not anticipate immediate relief at the gas pumps despite a drop in global oil prices. Brent crude, a key benchmark for oil prices, has fallen to its lowest level in weeks, but Australian fuel prices remain high due to the Iran war. Prices for unleaded petrol and diesel have surged to above $2.40 per litre and $2.90 per litre, respectively, in recent weeks.
However, some experts believe that a change may be on the horizon as international conflicts in Iran and Ukraine have decreased fuel exports from major producers like Russia, Saudi Arabia, and the United Arab Emirates. The International Energy Agency has warned that refineries are already at capacity, leaving limited options to prevent a further tightening of supplies and higher prices.
Australia relies heavily on imported petrol, making it vulnerable to global disruptions. While the Australian government ended a fuel excise cut on August 3, NRMA spokesman Peter Khoury noted that fuel prices have slowed in recent days. Brent crude has dropped from $US110 to $US98, but it is still higher than the pre-war average.
Experts advise Australians to watch the Singapore Mogas 95 benchmark for more accurate fuel indications, as the current decline may take up to 10 days to reach retail markets. Some downward pressure on petrol prices is expected in the next one to two weeks if international crude and Singapore refined-petrol prices remain lower, but geopolitical risks persist, and prices are likely to fluctuate.
Written by urgent.news from ABC News AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
